Application
This unit applies to those processing policy closures as a result of maturity terms and conditions or applications for surrender within the life insurance sector.
Prerequisites
Not applicable.
Elements and Performance Criteria
1. Receive notification | 1.1 Receive request for surrender or notification of maturity of a relevant life insurance contract 1.2 Check that documentation is correct and complete 1.3 Check request is valid 1.4 Determine organisational authority level required to process the request and refer it to an appropriately authorised individual or department as necessary |
2. Advise claimant of the consequences of processing the settlement | 2.1 Advise claimant of the consequences of proceeding with settlement 2.2 Inform the client of alternatives to surrender where appropriate 2.3 Obtain discharge as appropriate |
3. Calculate payment | 3.1 Verify entitlements on the basis of supplied evidence and the terms and conditions of the life insurance policy 3.2 Calculate and check entitlements in accordance with procedures and regulatory requirements |
4. Finalise settlement | 4.1 Confirm method of payment with client 4.2 Enter and confirm payment information on appropriate systems to make payment 4.3 Communicate settlement details to relevant stakeholders, as required, in accordance with procedures and regulatory requirements 4.4 Update records and file documentation in accordance with procedures and regulatory requirements |
Required Skills
Required skills
communication skills to:
gather and check information
liaise and share information with others
communicate appropriately with people from diverse backgrounds
IT skills to:
use computer applications (word processing, spreadsheet, database, specific purpose computer systems)
access and update records electronically
access web-based information services
numeracy skills to:
interpret numeric data and relevant statistics
calculate life insurance payments
organisational skills to efficiently plan and sequence work
problem solving skills to address errors in life insurance documentation
reading skills to:
read and understand relevant procedures
read and understand life insurance policies
read and interpret life insurance claims and supporting documentation
research and analysis skills to:
identify and interpret relevant information
analyse information and data
maintain currency of products and services knowledge
writing skills to:
accurately record information
prepare professional letters and emails.
Required knowledge
the ability to apply and explain as relevant to the settlement of life insurance claims:
life insurance administrative requirements
life insurance policy payment criteria
life insurance policy terms and conditions
organisational procedures
organisational systems for data entry and filing
product information
relevant regulatory requirements.
Evidence Required
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the ability to: apply analytical and administrative skills in the settlement of non-risk-based requests maintain and apply a thorough and up-to-date understanding of life insurance terms and conditions and claims processing maintain and apply a thorough and up-to-date understanding of life insurance administrative requirements perform tasks in accordance with relevant procedures and regulatory requirements. |
Context of and specific resources for assessment | Assessment must ensure: competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment access to and the use of a range of common office equipment, technology, software and consumables access to records access to corporate Privacy Policy access to organisational policies and procedures. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency observing processes and procedures in workplaces verbal or written questioning on underpinning knowledge and skills evaluating samples of work accessing and validating third party reports setting and reviewing workplace projects and business simulations or scenarios. |
Guidance information for assessment |
Range Statement
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Relevant life insurance contract may include: | annuities endowment policies investment account contracts investment-linked contracts whole of life policies. |
Valid must include: | policy exists policy is current claimant is authorised to deal with the policy. |
Consequences may include: | lump sum payment loss of future benefits loss of linked insurance cover. |
Alternatives to surrender may include: | loan against policy rollover partial surrender non surrender. |
Entitlements may include: | sums based on: cancellation commutation (for annuities and other income streams) maturity surrender retirement rollover satisfying another condition of release. |
Evidence may include: | proof of title proof of survival proof of age. |
Terms and conditions may include: | policy term policy exclusions. |
Procedures may include: | organisational complaints handling processes organisational customer service charter organisational guidelines organisational policy organisational privacy and confidentiality guidelines organisational procedures. |
Regulatory requirements may include: | life insurance legislation corporations legislation privacy legislation Australian Securities and Investments Commission (ASIC) regulatory guides. |
Appropriate systems may include: | policy administration systems document management systems. |
Relevant stakeholders may include: | internal parties administrators trustees underwriters claimant and associated parties advisers assignees beneficiaries executors lawyers life insured next of kin policy owners. |
Sectors
Life insurance
Employability Skills
This unit contains employability skills.
Licensing Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.